Financial Performance - The company reported a basic profit of $8.7 million but incurred a significant non-cash asset impairment of $163.9 million, resulting in a net loss of $156.8 million for 2023, compared to a loss of $87.9 million in 2022[46]. - Operating profit before changes in working capital was $43.3 million in 2023, down from $61.7 million in 2022, mainly due to a decrease in EBITDA[50]. - The company generated a net cash inflow from operating activities of $63.3 million in 2023, compared to a cash outflow of $32.7 million in 2022[50]. - The company reported a revenue decline of 9.2% to $253.0 million for the fiscal year ending December 31, 2023, compared to $278.8 million in 2022[66]. - Basic profit for the year was $8.7 million, a decrease of 65.1% from $25.0 million in 2022[66]. - The company recorded a net loss attributable to shareholders of $156.8 million, up 78.4% from $87.9 million in 2022, primarily due to a non-cash impairment of $163.9 million[66]. - EBITDA decreased to $45.8 million, down 18.4% from $56.1 million in the previous year[66]. - The company reported a total revenue of $252.987 million from various products and services, down from $278.757 million in 2022, a decline of 9.2%[172]. Debt and Liabilities - Total borrowings as of December 31, 2023, amounted to $67.321 million, a decrease from $78.058 million in 2022, representing a reduction of approximately 13.3%[12]. - The company has a net debt to EBITDA ratio requirement of less than 3.0 times, which has been adhered to since June 30, 2022[13]. - The debt service coverage ratio must be no less than 1.2 times, with the company having received waivers for this requirement from its major shareholder, MIC invest LLC[17]. - Total liabilities reached $85,951 thousand in 2023, up from $61,055 thousand in 2022, marking an increase of 40.6%[15]. - The net debt decreased significantly to $11.2 million by the end of 2023, down from $220.3 million in 2019, showing a substantial improvement in financial leverage[190]. - The net debt to EBITDA ratio improved from 0.74 in 2022 to 0.24 in 2023, reflecting enhanced financial stability[190]. Shareholding and Corporate Governance - The company maintained a public shareholding of 52.7% as of December 31, 2023, down from 58.5% in 2022, indicating a decrease of 5.8 percentage points[5]. - Axioma Capital FZE LLC acquired 401,812,360 shares, representing approximately 4.72% of the company's issued share capital, for a total consideration of HKD 47,413,858.48, equivalent to HKD 0.118 per share[32]. - Axioma's total shareholding increased to 30.61% post-acquisition, up from 25.89% prior to the transaction[32]. - The company confirmed compliance with the corporate governance code and has not violated any standards during the year[21]. Production and Operations - The production rate for K&S is calculated based on an annual capacity of approximately 3,155 thousand wet metric tons[38]. - Production volume fell by 4.0% to 2,467 thousand tons, primarily due to poor ore quality and mining issues[66]. - Iron ore production decreased by 4.0% to 2,466,829 tons in 2023, down from 2,569,845 tons in 2022[74]. - The company is preparing to commence mining operations at the Sutara mine in the first half of 2024[66]. - The company aims to maximize the potential of the Sutara mine and is investing significant resources to ensure its timely operation[69]. Costs and Expenses - Cash costs, excluding transportation, increased by 18.2% to $62.9 per ton due to rising operational costs[76]. - General administrative expenses before depreciation decreased by 32.6% year-on-year to $9.9 million due to the absence of one-time discretionary bonuses and payments to directors in 2023[104]. - The company recorded a total operating expenditure of $200.3 million and capital expenditure of $17.0 million in 2023, totaling $217.3 million[55]. Market Conditions and Risks - The company faced foreign exchange risk due to transactions denominated in foreign currencies, primarily the Russian ruble, and has no current hedging positions against the ruble[59]. - The average inflation rate in Russia for 2023 was approximately 7.4%, contributing to increased operational costs[98]. - The Russian ruble depreciated significantly in 2023, averaging 85 rubles per dollar, impacting the cost structure positively for K&S[101][102]. Future Outlook - The company anticipates 2024 to be the most challenging year, as it is currently in a transitional phase due to the depletion of the Kimkan mine and awaiting the start of operations at the Sutara mine[129]. - Future success depends on three key factors: successful operation of Sutara, recovery of the Chinese economy, and the ability to control operational costs[147]. - The company expresses confidence in its long-term development potential and has recently increased its shareholding to reflect this commitment[130].
铁货(01029) - 2023 - 年度业绩